The Millennium Challenge Corporation is a foreign aid agency of the United States government, independent of the U.S. Agency for International Development. Established in 2004, MCC has pioneered a performance-based aid model, delivering aid to partner countries that are typically among the world’s least developed, but which outperform their peers on indicators measuring good governance, economic freedom and investment in human capital.
Cooperation takes the form of grants delivered through compacts — larger, five-year grants to qualifying countries — and threshold programs — smaller grants for countries that are near to qualifying and are committed to becoming future compact countries.
In recent weeks, MCC has formally notified the U.S. Congress of its intent to negotiate new compacts with the governments of Côte d'Ivoire and Sri Lanka, as well as a threshold program with the government of Kosovo.